Emmis Receives Delisting Notification

3-4-2012

According to an SEC filing made by Emmis, the company has received "a written notification from The Nasdaq Stock Market stating that because the company had not regained compliance with the $1.00 minimum bid price requirement for continued listing, the company?s class A common stock would be subject to delisting unless the company requests a hearing before a NASDAQ panel on or before March 6th. Emmis has requested a hearing where it will present a plan to regain compliance.

Emmis says this determination does not directly affect the listing of the Company?s 6.25% Series A Cumulative Convertible Preferred Stock (the ?Preferred Stock?), which will continue to trade on The Nasdaq Global Select Market under the symbol ?EMMSP?.  However, because the continued listing of the Preferred Stock on The Nasdaq Global Select Market is dependent upon the continued listing of the Class A Common Stock on The Nasdaq Global Select Market, the Company believes the Preferred Stock will likely be delisted from The Nasdaq Global Select Market if the Class A Common Stock is delisted.

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NASDAQ Sends Emmis Delisting Notice

Late Wednesday, Emmis received notification from Nasdaq that the Company's Class A Common Stock had closed below the minimum $1.00 requirement for 30 consecutive business days and therefore is not in compliance. The Company has until February 27, 2012, to regain compliance with the Minimum Bid Price Rule. During this period, the Company's Class A Common Stock will continue to trade on the Nasdaq Global Select Market.

"The notice from Nasdaq was not a surprise, but the timing is ironic coming the very day before we closed the Merlin transaction and repaid approximately $120 million of our debt.  We are optimistic that the performance of our businesses and our continued efforts to rationalize our balance sheet will enable us to achieve compliance with the Minimum Bid Price Rule before February 27, 2012," said Smulyan.

If at any time before February 27, 2012, the bid price of the Company's Class A Common Stock closes at $1.00 per share or more for a minimum of 10 consecutive business days, Nasdaq will notify the Company that it has achieved compliance with the Minimum Bid Price Rule. If the Company does not regain compliance with the Minimum Bid Price Rule by February 27, 2012, Nasdaq will notify the Company that its Class A Common Stock will be delisted from the Nasdaq Global Select Market.  Nasdaq rules would then permit the Company to appeal any delisting determination by the Nasdaq staff to a Listing Qualifications Panel.

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